A rundown pub converted into a stunning £19 million townhouse has been sold again at a multi-million pound loss following one of the biggest repossessions of the year.

The Red Lion, in Mayfair, was closed in 2009 and sold to upmarket developers.

It kicked off a huge Grand Designs style project with all but the front facade of the watering hole demolished.

The site was transformed from a 4,200 square feet old-fashioned British boozer to an exquisite 8,500 square feet family home with six bedrooms, six bathrooms, two reception rooms, a gym, swimming pool and roof terrace.

It was put on the market in 2013 for £25 million and was sold the following year for £19.175 million.

But the owner has had it repossessed by the bank, which has just sold it for £15 million.

The home has six bedrooms, six bathrooms, two reception rooms, a gym, a swimming pool and a roof terrace (Photo - swns.com)

This is £10 million LESS than the original asking price in 2013 and a 21 per cent fall on the price paid four years ago.

Property buying agency Black Brick was behind the purchase, swooping on Red Lion House for a client looking for a family home in Mayfair.

They described the price as "extremely attractive" and contracts on the home were exchanged just seven days after it was viewed.

Camilla Dell, managing partner at Black Brick, said: “Through our contacts, we’re aware of a number of attractive prime properties going through this process that are likely to come to the market soon.

"They are likely to offer significant value for buyers who can move quickly.

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However, the surrounding area is "interesting" from a future investment perspective, according to Black Brick.

On one side, billionaire entrepreneur John Caudwell is restoring his own 50,000 square feet private residence, and on the other he is developing a new luxury block of residential apartments, Audley Square.

The latter is due to be one of the most luxurious new build developments in central London.

Last week, Westminster Council announced plans to ban new homes and apartments which are more than 1,600 square feet.